About this Show

Fareed Zakaria GPS

News/Business. Foreign affairs and policies shaping the world. New.

NETWORK
CNN

DURATION
01:01:00

RATING

SCANNED IN
San Francisco, CA, USA

SOURCE
Comcast Cable

TUNER
Channel v759

VIDEO CODEC
mpeg2video

AUDIO CODEC
ac3

PIXEL WIDTH
1920

PIXEL HEIGHT
1080

TOPIC FREQUENCY

China 14, U.s. 13, Afghanistan 12, Europe 10, America 10, United States 8, Washington 5, Us 5, Purina 4, Ted 4, Germany 4, Irs 4, Eric Schmidt 3, Fareed Zakaria 3, Maxwell 3, Kabul 3, United 2, Crowley 2, Glenn 2, Cialis 2,
Borrow a DVD
of this show
  CNN    Fareed Zakaria GPS    News/Business. Foreign affairs  
   and policies shaping the world. New.  

    May 19, 2013
    7:00 - 8:01am PDT  

7:00am
i'm candy crowley in washington. head to cnn.com/sotu for analysis and extras. if you missed any part of today's show, find us on itunes. fareed zakaria "gps" is next for our viewers here in the u.s. this is "gps the global public square." welcome to all of you in the united states and around the world, i'm fareed zakaria. we'll start today in washington, d.c. the week from hell for the white house with three controversies all erupting on them. how in the world do you handle so many problems, so much incoming fire at once? we'll talk to a man who would know, former white house chief of staff, ken dubber steen. and the amazing shrinking american budget deficit. i'll ask mitt romney's chief economic adviser whether he thinks the problem has gone away. also, as america prepares to draw down from afghanistan, what can it learn from britain's
7:01am
withdrawal 170 years ago? i'll ask theauthor of a great new book. next, a look into the crystal ball of technology with google's executive chairman eric schmit. a sure fire plan to reduce carbon dioxide emissions. how so? stay tuned. first, here is my take. conservatives are, of course, mad at barack obama. we'll talk about the various scandals in a moment, but they're also mad at a country that isn't mad enough at him. this frustration is now taking over main stream and intelligent voices within the conservative movement and about broader issues than benghazi. brett stevens, the columnist for "wall street journal" lementes that president obama is not paying a price for a foreign policy that he, stevens, describes as isolationist. now, isolationism will come as a surprise to the diplomat soldiers and intelligence officers working on america's
7:02am
vast foreign policy. washington spends more on defense than the next ten great powers put together and more on intelligence than most nations spend on their entire militaries. we have more than 200,000 troops stationed at dozens of bases abroad from bahrain to germany to south korea to turkey. we have formal commitments to defend dozens of our important allies in europe, middle east and asia. and our vast footprint has been expanded under the obama administration. the white house has extended america's security umbrella to include defending israel and the moderate arab states against the threat posed by iran's possible development and nuclear weapons. it is the u.s. military presence in asia and new base in australia to deal with china's rights. to call all this isolationism is to mangle both language and logic. in fact, president obama's world view is rooted in american exceptionalism. you see, the fundamental pattern
7:03am
of international relations is that as a country becomes powerful, others gang up to bring it down. that's what happened to the happsburg empire and germany and, of course, the soviet union. one great exception to this rule in modern history. the united states. america has risen to global might and has not produced the balancing opposition that many would have predicted. in fact, the astonishing position of being the world's dominant power while many of the world's next most powerful nations, britain, france, germany, japan are all allied with it. the reason surely has something to do with the nature of germany. after world war ii we revive our enemy as and turn them into allies. people around the world do see the u.s. as different from other older empyres. but it also has something to do with the way the united states has exercised power. reluctantly. historically, america was not eager to jump into the global
7:04am
arena. it entered world war one at the tail end of the war. it entered world war ii only after japan attacked pearl harbor. it contained soviet aggression in europe, but careful not too push t push too far in other places. from dwight eisenhower to robert gates a strand of american thinking, realism that urges america to be disciplined about open-ended military interventions for just this reason. we have just gone through a decade devoted to a very different idea. that american power must be used actively, aggressively, preemptively and in pursuit of expansive goals beyond national interest. the result was thousands of american soldiers dead, hundreds of thousands of iraqi civilians dead, $2 trillion spent and the erosion of american influence and good will across the globe. can we please get a few years of respite to rebuild our economic, political and moral capital?
7:05am
for more on this, go to cnn.com/fareed for a link to my "time" column. let's get started. eight days after ronald reagan went on tv to admit that his administration had traded arms for hostages in the so-called iran contra scandal republican d then he got the chief job. chief of staff shortly after it was revealed that nancy reagan had been using an astrologer to pick dates for her husband's public appearances. in other words, he is a man who knows white house controversy and how to deal with it. ken, thank you so much. >> fareed, it's a pleasure, always, to be with you. >> on the scale of white house scandals, how does this strike you? a lot of people say, well, there
7:06am
is no crime underneath there or it does not appear like watergate. how do you look at it? >> look, i don't think we know the answer to that yet. i think it's premature. every second-term president, certainly since eisenhower have gone into a ditch. with when dpou go into a ditch, you stop digging. so far this white house has not stopped digging. on one hand, the president says it's outrageous and then he goes to baltimore on friday and says, well, it's just a washington distraction. this is serious business when you're talking about the irs or perhaps changing talking points. or the ap and wiretapping reporters. let alone secretary sebelius and hhs basically asking for money from industries that she is regulating.
7:07am
now, people start saying it's a trifecta. it's really a superfecta. the top four. and the confluence of all of them erodes trust in government. it erodes trust in the president. and a time when the president needs to be working on immigration reform, on debt reduction, on the fiscal situation, on all the international issues, this has got to be a major distraction and we don't know yet where things are going to lead. so the irs matter is something that everybody in america can relate to. you know, everybody hates the irs and this just confirms the narrative. the white house just to dismiss it as low-level employees is not really what i think the american people expect. >> so, how would you handle it? surely there is some tradeoff here where you don't want to feed, you know, enemy fire with
7:08am
every charge and you jump and respond. on the other hand, you do need to deal with this. how do you figure out that balance? you've been there. >> you figure out the balance is the president has to focus on his agenda. but he also has to deal with the people around him so that everybody understands that the arrogance of power has no place in this white house in any white house. that the politics of destruction and demonization that come from a campaign have to stop when you start governing. the president has to set the tone with the american people. not that something is a distraction, but let's take this very seriously and get to the bottom of it. you know, holding the president accountable, not simply cabinet, subcabinet agencies or people at the irs. but the president saying, i accept responsibility. i am the commander in chief, i
7:09am
am the president. you know, the american people understand and if the president were to stand up and say, look, clearly mistakes were made and it's on my watch and i'm going to fix each and every one of them, that makes a big, big r f difference. he needs to lose a bunker mentality. right now everybody in the white house seems to be clustered. they need to get out. they need to answer press questions. not necessarily just the president. i mean, everybody. >> do you think he needs new people? >> well, i think always in a second term you need fresh faces and new ideas. look, when president reagan had iran contra he got rid of poindexter and others and appointed myself and frank carlucci and that little known general at the time, colin powell to come in and set his white house straight under his leadership.
7:10am
i am not saying we're at that point yet. but i'm saying that new blood and fresh ideas are something that are fundamentally important. the other thing that you can fall back on is a reservoir of good will that you developed with the congress and with the media. and one of the things that i think everybody would say is lacking is that the first four years, at least, those trusting relationships on capitol hill on both sides of the aisle fundamentally a have not been developed. now, whether it's disdain, whether it's dislike, you always have to develop those kind of trusting relationships and right now the white house is suffering because they did not create those relationships. when all you do at a second term is fundamentally change a congressional liaison to somebody who xwoenobody has eve heard of on either side of the aisle that, to me, is not
7:11am
beefing up a white house staff and starting out to build some of these trusting relationships. >> ken duberstein, thank you. that is tough love if i ever heard it before for a man who supported the president for izelection. have we magically fixed our deficit problem? glenn hubbard from columbia. sundays are the warrior's day to unplug and recharge. what if this feeling could last all week? with centurylink as your trusted partner, it can. our visionary cloud infrastructure and global broadband network free you to focus on what matters. with custom communications solutions and dedicated support, your business can shine all week long.
7:12am
here at the hutchison household. but one dark stormy evening... there were two things i could tell: she needed a good meal and a good family. so we gave her what our other cats love, purina cat chow complete. it's the best because it has something for all of our cats! and after a couple of weeks she was healthy, happy, and definitely part of the family. we're so lucky that lucy picked us. [ female announcer ] purina cat chow complete. always there for you. humans.
7:13am
we are beautifully imperfect creatures living in an imperfect world. that's why liberty mutual insurance has your back, offering exclusive products like optional better car replacement, where if your car is totaled, we give you the money to buy one a model year newer. call... and ask an insurance expert about all our benefits today, like our 24/7 support and service, because at liberty mutual insurance, we believe our customers do their best out there in the world, so we do everything we can to be there for them when they need us. plus, you could save hundreds when you switch, up to $423. call... today. liberty mutual insurance -- responsibility. what's your policy?
7:14am
ó? ...and we inspected his brakes for free.
7:15am
-free is good. -free is very good. [ male announcer ] now get 50% off brake pads and shoes at meineke. is america's deficit problem so bad? well, not any more at least, not for the next decade. the congressional budget predicts, they did it on tuesday, that in 2015 the deficit will be only 2.1% of gdp, that's down from 4% this year, 7% last year and a high of 10% in 2009. so, should we celebrate? joining me are glenn hubbard, the dean of the columbia business school chief economic adviser to the romney campaign and also the co-author of a fascinating new book "balance the economics of great powers from ancient rome to modern america." and zanny minten beddoes the economic analysis of "the economist." you look at this chart, the
7:16am
deficit essentially goes up a lot during the financial crisis and its aftermath and it's now down essentially to what it was under the bush administration where you were at one point chairman of the council of economic advisors. it would seem to vindicate the people who say, look, the reason the deficit went up a collapse of tax revenues more than anything else and we're back now, now that the economy is growing, down to a completely manageable place. so, all the scare stuff about the debt was unfair. >> well, of course, it is good news that the deficit has fallen, but before we celebrate with champagne, a couple big problems. if you look at the ten-year numbers, they didn't move very much at all. in other words, the deficit gets better in the near term, but continues to get worse. >> thets because medicare more than anything else. >> correct. we still have a long-term entitlement problem that is really a bad. not only raises the deficit, but threatens to crowd out every kind of spending we do as a
7:17am
country. >> what do you draw from these numbers? >> i think glenn right that the long-term problem is one of medicare spending and that remains a big problem. but i think what you're absolutely right that the increase in the deficit in the wake of the financial crisis was there because of plunging tax revenue and, indeed, because of some stimulus spending but that was entirely appropriate when you had in the aftermath of this huge financial bust, it's appropriate for the public sector to take over for a bid. i'm actually slightly, i wouldn't take these numbers as being all good news, even in the short term because we actually had big tax increases this year and we have the sequester in place and cutting spending in the short term. i don't think that's optimal policy. i would much rather have more of a focus on what glenn is concerned about rightly as being the median and long-term problem because we would have had a stronger recovery, if that was the case. >> larger deficits than the 2.1% of gdp right now because it would stimulate more demand. >> the policy is what matters.
7:18am
if the economy is growing stronger than anybody expects and that's where the deficit comes down, i would rather a policy than the median and long term and not sequester cuts. >> this is right here and in europe. >> are you willing to endorse a big infrastructure spending push? >> i don't think an infrastructure spending push, it takes years for it to happen. long-term capital plan and not stimulus. i agree 100% with zanny, the things like sequester make very little sense. we need to focus on long-term problems and our political process can't seem to do other out european growth numbers that are looking terrible. this is the flip side of the story. is it fair to say now that the evidence is in and that too much austerity, a lot of cuts in government spending in countries across europe with the exception of northern europe and germany
7:19am
has produced slower growth. >> well, you're completely right. six consecutive quarters of recession in the euro zone and no sign of things changing. yes, in part, it is an indictment of too much short-term cutting. but i think it's also more than that. it is the failure to deal with the basic problems of the euro zone. and the failure to get credit going again in the periphery of europe. not only huge budget cuts, but very, very tight access to credit and where is the growth they're going to come from? one part of the comparison of the u.s. is, u.s. didn't have so much tightening, fiscal tightening, although now it has more. the u.s. got to grips. it cleaned up the banks and recapitalized them and we kind of got that bit of the crisis out of the way europe hasn't done that. and the fed, those three are different in europe. >> i have to ask you about the irs. the irs commissioner, some people were appointed by bush. do you know any of them and do
7:20am
you have any thoughts about this irs issue? >> i don't know the individuals at the irs but it raises an important point that people have gotten and one that they haven't. the one they have gotten any abuse of power needs to be investigated. both sides would agree with that. but the part that is really subtle is the fact that there is actually value in a lot of political competition. i don't happen to be part of the tea party, but i would support any political group that is trying to compete in the marketplace for ideas. i think that frankly the citizens united decision was a big plus. in advancing that competition. that's the big -- >> the part i'm puzzled by. why do people have tax exempt status in the first place? why should you be tax exempt -- >> that's a very big discussion about the whole, the whole breath of tax exemption and the bigger picture there. the more exampletions you have for all kinds of things the higher the tax rate has to be on the remaining. >> that's true. >> and somebody has to determine
7:21am
who is exempt and who's not. okay. what is the big point relating to all this that we should learn from your book? >> well, two points in the book. one, people have a declinest view of the united states and all that's going on and our view in the book, we don't think the u.s. is in decline. but we also believe, though, that the fiscal policy problems the country faces really have that potential and change rules of fiscal policy. it's very hard to see our political process really coming to grips. >> democracies in the united states or europe impose short-term pain for long-term gain? >> i think they can when they are forced to and when something precipitates action. i basically agree with your broad analysis, but i worry that you have too much faith perhaps in rules for achieving that. it's very, very hard i think to design rules that are the appropriate rules in advance.
7:22am
and i think we have to in the end have faith that politicians will act in a way when they're pushed to that is the right way. i think the main thing you can expect from fiscal policy is that you have to force things to be as transparent as possible. i think the cbo, for example, the congressional budget office is one of the best things that happened to u.s. fiscal policy ever because it forces people to come to terms with the consequences of what they're doing, but, rules i worry about it is seen as a magic one. we write a rule, amendment and everything will be fine. >> the transparency is important. if you did something as simple as putting changes in the entitlement for the budget for the congress to have to see and deal with, i think that's critical. >> thank you so much. terrific book. up next, what in the world. why the united states needs to share its secrets with china. it could be the solution to climate change. i'll explain. ♪
7:23am
(train horn) vo: wherever our trains go, the economy comes to life. norfolk southern. one line, infinite possibilities. you know it even after all these years. but your erectile dysfunction - you know,that could be a question of blood flow. cialis tadalafil for daily use helps you be ready anytime the moment's right. you can be more confident in your ability to be ready. and the same cialis is the only daily ed tablet approved to treat ed and symptoms of bph, like needing to go frequently or urgently. tell your doctor about all your medical conditions and medications, and ask if your heart is healthy enough for sexual activity. do not take cialis if you take nitrates for chest pain, as this may cause an unsafe drop in blood pressure. do not drink alcohol in excess with cialis. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, seek immediate medical help
7:24am
for an erection lasting more than four hours. if you have any sudden decrease or loss in hearing or vision, or if you have any allergic reactions such as rash, hives, swelling of the lips, tongue or throat, or difficulty breathing or swallowing, stop taking cialis and get medical help right away. ask your doctor about cialis for daily use and a 30-tablet free trial. where over seventy-five percent of store management started as i'm the next american success story. working for a company hourly associates. there's opportunity here. i can use walmart's education benefits to get a degree, maybe work in it, or be an engineer, helping walmart conserve energy. even today, when our store does well, i earn quarterly bonuses. when people look at me, i hope they see someone working their way up. vo: opportunity, that's the real walmart. how we get there is not. we're americans. we work. we plan.
7:25am
ameriprise advisors can help you like they've helped millions of others. to help you retire your way, with confidence. ♪ that's what ameriprise financial does. that's what they can do with you. let's get to work. ameriprise financial. more within reach.
7:26am
now for our "worhat in the world" segment. tackle one of the great challenges of our times. cutting carbon emissions to slow
7:27am
down climate change. it would result in the single largest reduction of co2 emissions globally. but there are a couple of hitches, let me explain. here's the idea. it's time to help china master fracking safely. by now it is clear that frack g fracking, the process of extracting shale gas has dramatically lowered america's carbon emissions. according to the u.s. energy administration a fifth of our electricity came from natural gas while almost 50% came from coal. by 2012, natural gas had increased its share to 30% of our electricity and coal shares have dropped to 37%. the change was because of fracking. over the same period, shale gas production grew 800%. the reason the shift is important is that coal is the
7:28am
world's dirtiest source of energy. both in its emission of carbon dioxide and particle pollutants. thanks in large part to our reduced dependency on coal, u.s. co2 emissions hit an 18-year low in 2012. u.s. emissions fell over the last five years by more than all of europe's did. so, and this is the first hitch, environmentalists have to understand that whatever our dreams and fantasies, natural gas is in reality producing a dramatic reduction in carbon emissions. but now the second hitch. why is it a good idea to help what some consider our greatest rival, catch up with us. why should we help china copy our winning formula? the answer is simple. it is a win-win scenario. despite global investments in solar, wind and nuclear the world energy consumption has
7:29am
gotten cleaner by only 1%. we've essentially made no progress. why? well, in large part it is because of the means by which china and other such countries are powering their super fast growth. iea data shows that if you exclude china, global consumption of coal has increased only slightly in the past decade. china, by comparison, has more than doubled its consumption of coal. it now burns nearly as much coal as the rest of the world put together. and it won't stop there. every week, it opens new coal plants leading to increasingly polluted and hazardous air. this is, of course, not just china's problem, but the whole world's problem. as it turns out, we're not the only ones sitting on top of a shale gold mine. according to our own energy department, china actually has shale gas reserves that are 50% larger than ours. now, beijing is going to try to
7:30am
mine these reserves in every way it can. but many experts worry that china lacks the experience and the technology tophic rackfrack effectively. it has no idea how to frack safely. here in the united states, we have environmentalists and free press to push authorities to regulate and monitor this very new industry. china, on the other hand, may not have the same checks and balances. this is why the united states needs to share its expertise and not keep it secret. one of the dilemmas at any climate summit is how to win developing countries off the dirtiest forms of energy. china can understandably argue that its overriding priority is growth. as the last few decades have shown, a fast-growing china translates to a fast-growing wor world. a similar impact on the environment.
7:31am
up next, a fascinating account of the first afghan war and the lessons it holds for today's war in afghanistan. and tea parties. i'll have more awkward conversations than i'm equipped for, because i'm raising two girls on my own. i'll worry about the economy more than a few times before they're grown. but it's for them, so i've found a way. who matters most to you says the most about you. at massmutual we're owned by our policyowners, and they matter most to us. ready to plan for your future? we'll help you get there. have hail damage to both their cars. ted ted is trying to get a hold of his insurance agent. maxwell is not. he's on geico.com setting up an appointment with an adjuster. ted is now on hold with his insurance company. maxwell is not and just confirmed a 5:30 time for tuesday. ted, is still waiting. yes! maxwell is out and about...
7:32am
with ted's now ex-girlfriend. wheeeee! whoo! later ted! online claims appointments. just a click away on geico.com. [ male announcer ] we all have something neatly tucked away in the back of our mind. a secret hope. that thing we've always wanted to do. it's not about having dreams, it's about reaching them. ♪ an ally for real possibilities. aarp. find tools and direction at aarp.org/possibilities.
7:33am
as part of a heart healthy diet. that's true. ...but you still have to go to the gym. ♪ the one and only, cheerios ♪ the one and only, cheerios
7:34am
...and we inspected his brakes for free. -free is good. -free is very good. [ male announcer ] now get 50% off brake pads and shoes at meineke. i'm candy crowley in
7:35am
washington with a check of the headlines. north korea fired a short-range missile into the sea of japan today. according to a south korean news agency. this is their fourth launch in two days. they come despite pleas from south creaa and the u.n. chief to halt the launches at times of high tension. pakistani politician was shot to death saturday on the eve of a highly contested rerun election in her district. her death comes after she made allegations about vote rigging in early balloting. she was killed in an execution-style attack. oxbow won the victory stakes. crashed any hope for kentucky derby winner orb, who finished fourth in the race. the third and final race, the belmont stakes is june 4th in new york. the last one to win a triple
7:36am
crown was in 1978. someone in zephyrhills, florida, is waking up richer today. the single winning ticket was sold at a publix supermarket in the tampa suburb. the largest in powerball history with a cash value of nearly $377 million. those are your top stories. now, back to fareed zakaria "gps." the jumbo jet that crashed in afghanistan recently was taking part in an extraordinary effort to pull out all allied supplies before the end of 2014. there are believed to be some 125,000 containers and 80,000 vehicles that need to be withdrawn in addition to about 100,000 troops. a legitical nightmare for sure. i thought all of this as i read about an earlier rush into afghanistan, almost 200 years ago.
7:37am
in 1839 the british invaded and brought with them 2,100 soldiers and 38,000 cservants and 30,000 camels. william is the authaer of the great new book that tells this story "return of a king, the battle for afghanistan 1839 to '42." he joins me now. welcome. >> thank you. >> talk about retreat. what do you think retreat is going to look like based on history? >> well, the british retreat from kabul couldn't have gone worse. there's ever reason to hope this will go a bit better, you'll add transport. in 1841, there was a huge uprising against the british. it began in the south in helmand and spread north and very soon the british were surrounded in the same cities in which the
7:38am
american troops are surrounded today in kandahar, jalalabad. they had stupidly kept their ammunition and food in outlining forts and it was captured by the insurgents very early on. they were given safe passage back. the retreat from kabul that followed began on the 6th of january, 1842 and one of the great imperial disasters. 18,500 men and women and the rest from north india and they marched out into the snow. they had no idea how to cope in winter war fare. they weren't equipped or trained for it and six days later, one man made it through to jalalabad. everyone else was either killed, enslaved or taken hostage. >> now, the hostile forces that
7:39am
you describe are in the south of afghanistan, kandahar, this is precisely the same problem that the united states faces. which is the area of afghanistan that is hostile to america and to karzai and the government we put in place is the pashtun area and why is it that they don't seem to be the same guys who oppose the british are opposing the u.s.? >> it's history repeating itself very closely. i wish to give a copy of this book ten years ago because, apparently, the british party there was a tradition that you keep well out of afghanistan until even the 1950s when alex douglas hume took over the keys. the old man said, let me give one piece of advice, young man. as long as you don't invade afghanistan, you'll probably do fine. and we kind of wish that wisdom would have lasted another 30 years, 40 years.
7:40am
invade iraq, you can run off with the oil remnants. you invade afghanistan, you just pull money in. a huge economic hole in the budget and the kind of low-level insurgency which afghans so brilliant at. just a slow attrition of foreign forces and one throws up their hands and says, well, it's just not worth it. >> in the middle of it, hamid karzai, the man we backed for president. one thing i noticed in your book, the man who the british put in place, their karzai, if you will, was so reviled within the country as a kind of foreign puppet that for decades and decades and for centuries in 2001 you would hear afghans say, make sure, you are not a western puppet who has no support domestically. >> in a sense, the main reason for writing this book is that president karzai, amazingly, is the chief of the same tribe. in other words, the west has put the same guy on twice.
7:41am
and he's being brought to justice. brought down by the tribe and today they make up the taliban. so, in many ways what we have is a replay of existing tribal rivalries. slightly different flags. >> karzai seems attentive to this issue. he denounces the west every third week, precisely because he's trying to make sure people don't think he's -- >> he is a more cultured man than people make out. he read this book when it was published in india within a week and i got called to kabul and i spent 90 minutes with him. i am not like any of the other players ignorantly as we all are. he is terrified that he will be remembered, which is why he makes these outrageous statements. soldiers are dying in helmand and then he says, well, i'm going to join the taliban and he
7:42am
makes these crazy statements. what he has to do, he's an elected, democratic pa iic polln and it is curtains for him. he said to me personally. he said, so-called allies, they treat me as they used to treat him. i'm determined that no one will ever mistake me for him. i'm an independent ruler and i'm going to rule my people myself. i'm never going to be remembered as a puppet. >> one of the great lessons i drew from some of this history is that at the end of the day, doesn't even quite understand why the british were in afghanistan. there was this rumor of russian involvement. will we look back on this and to a certain extent we understand why we went in because of al qaeda, but vast expenditure and the enormous time frame, will we have much to show for it? >> i think in a sense the chinese have played the trump
7:43am
card. they didn't send in any aid or development. and they've got the largest reserve in the world. they bought lithium and they're not building a road network and railway network to extract it. any foreign power in its early days, if any foreign power manages afghanistan, it might be the chinese and they'll do it by doing business with them. >> pleasure to have you on. terrific book. >> thank you. google's eric schmidt on the future of technology. fascinating tour. to eat. then rest. to fuel the metabolic cycle they were born to have, purina one created new healthy metabolism wet and dry. with purina one and the right activity, we're turning feeding into a true nature experience.
7:44am
join us at purinaone.com there's a reason no one says "easy like monday morning." sundays are the warrior's day to unplug and recharge. what if this feeling could last all week? with centurylink as your trusted partner, it can. our visionary cloud infrastructure and global broadband network free you to focus on what matters. with custom communications solutions and dedicated support, your business can shine all week long.
7:45am
7:46am
7:47am
the last two decades have seen an explosion of technological advances and it's all getting faster, smarter and smaller. so, what are the next set of advances and who is going to win? i had a fascinating conversation recently with two people in the know. eric schmidt executive chairman of google and jared cone, chairman of google ideas. they have written "the new digital age reshaping the future
7:48am
of people, nations and business." >> when people talking about technology, everyone has their favorite trend that they talk about. the rise of super computing and the cloud, big data. i figure you're the guy to ask. what is the single, what is the big trend in technology that excites you? >> our industry goes through transformations. the pc phase, the web browsing phase. the phase we're now going in is the mobile first phase where it's all fundamentally about mobile phones and tablets and you see that in the transition from pcs, tablets and phones which is going on in the industry today. not just the phone, but the phone connected by a 3g or 4g or wi-fi networks to powerful super computers. and it's the sum of those two that will define i.t., c computing, the media and so forth over the next five to ten years. >> in a sense the phone has
7:49am
become the computer because once you have connectivity and it can process data. >> people never use the phones to actually talk on them any more. they use them for everything else. what we've seen is an explosion in growth rates in mobile computing, mobile surge, mobile applicati applications. if you go to start ups in our industry, the startps are all building applications for iphones and android phones and all releasing on them first and they do interesting things. the phones, remember, know where they are and they tend to be highly personalized and with opt in they can help you out. they can make suggestions. where should i go? what should i do, what should i learn? they can make predictions. how long will it take for me to get home because of traffic? will there be a traffic jam this afternoon because of the baseball game? these are very useful things in our world. >> what does it mean for a company like intel whose trips have been dominant in pcs or
7:50am
company like ampple which has used a closed, very elegant system. >> with intel, of course, a great player with the pcs but they also have mobile chips now that are appearing in phones that you will be purchasing at the local store. that has been their strategy and it seems to be working. with apaal steve drove from the enterprise model they have to a tablet and iphone model. their issue, of course, is their system is completely closed in the sense that they curate it. they make sure it is a certain size. the an adroid marketplace and this is what google does is much, much larger. to give you an example of the scale more than 7750 million android phones in use today and we activate more than 1.5 million phones per day. those prices, by the way, are coming down. today they're in the couple hundred dollars and coming down to 100 and eventually over some number of years to $50, $30 and the combeenation of all that means android will be the
7:51am
primary mechanism by which the average person uses the internet because the average person will not have a pc, they will have an android-based phone somewhere in the developing world. >> do you think what you're seeing is an explosion of entrepreneurship and invention because it, the costs, the barrier to entry to come up with some nifty little product seems to be so low now. >> when you go to pakistan or different parts of africa or different places where smartphones are truly new and people's first experience is connecting to the internet is not on a pc, it's on a phone. they're exporting enormous amounts of creativity and ideas back into the communities that actually in the environments that built these products. so, there is a nice partnership between the develop and developing world and, yes, the beautiful products will always be developed by companies in, you know, western europe and the united states and parts of asia. but the most creative ways to use those products will always come from the parts of the world that are written with the
7:52am
greatest number of challenges. that is the next 5 billion. >> when you ask, if you look back historically, many a of those things have not happened. you know, in the '50s people thought we wouldn't have jets and cars that fly and things like that. >> we'll still have those, just 50 years later. >> why do you think this is different? why do you think these things are different? >> the claims we're making are straight forward extrapolations of work that is going on now in labs. educated guesses based on trends that have continued for a very long time. if you go back to 10 to 15 years ago, the predictions about the arrival of the internet, the impact of personal information and so forth have all, in fact, come through. >> is the united states the central of the world for this stuff? >> for the moment. there's evidence that asia will get there. the number of engineers being produced in asia and the commitment of education in asia
7:53am
are all catching up and eventually it is a numbers game and there are more incredibly smart indians than there are americans. this is the other aspect of our industry which is we focus on the globalized competition and the need for education reform so that we can remain competitive as a nation. >> eric schmidt, jared cohen, pleasure to have you on. up next, the link between money and happiness. does more money make us more happy? how happy are americans? the answers will surprise you. that i needed to make one of those tech jobs mine. we teach cutting-edge engineering technology, computer information systems, networking and communications management -- the things that our students need to know in the world today. our country needs more college grads to help fill all the open technology jobs. to help meet that need, here at devry university, we're offering $4 million dollars in tech scholarships for qualified new students. learn more at devry.edu.
7:54am
you will lose 3 sets of keys 4 cell phones 7 socks and 6 weeks of sleep but one thing you don't want to lose is any more teeth. if you wear a partial, you are almost twice as likely to lose your supporting teeth. new poligrip and polident for partials 'seal and protect' helps minimize stress, which may damage supporting teeth, by stabilizing your partial. and 'clean and protect' kills odor-causing bacteria. care for your partial. help protect your natural teeth. care for your partial. ♪ (train horn) vo: wherever our trains go, the economy comes to life. norfolk southern. one line, infinite possibilities.
7:55am
7:56am
7:57am
iran is getting ready for presidential elections next month. the incumbent mahmoud ahmadinejad is not allowed to contest because he already served two terms. i found it interesting to see that iran's voting age is 18 because only a few years ago it
7:58am
had the world's lowest voting age, 15. that brings me to my question of the week. what is the world's highest national voting age? "a" 18, "b" 20, "c" 21 or "d" 30. bonus points if you can name the country, as well. go to cnn.com/fareed for more insight and analysis and follow us on twitter and facebook and all that stuff. if you missed one of our shows, remember you can go to itunes.com/fareed. this week's book is "return of a king." the first afghan war reads like a novel. it's a great and beautifully written and it also has important lessons for the present. economists have always been fascinated by the link between income and happiness. in the 1970s, we learned of the east
7:59am
easterlin paradox. more money does not always lead to more happiness. instead, more money often means more demands and desires. well, a new paper by "the economist" turns that thesis on its head. look at this graph plotting satisfaction against income. if you were in a relatively poor country like china, india or iran, more money meant more satisfaction. even if you were in a rich country and this is what is new, the results hold up. look at france, germany or the u.s. on this chart. what i also found interesting was that americans hit the highest levels of satisfaction among the 25 most populous countries in the world. ♪ ♪ i can't get no satisfaction >> but i guess you can get satisfaction as long as you can pay for it. the correct answer to our
8:00am
gps question is "c," 21 years. a number of countries require you to be 21 to vote including kuwait, lebanon, saudi arabia, oman. i will see you next week, stay tuned for "reliable sources." i just got off the phone with jonathan karl who for the first time is expressing regret for his reporting on the administration benghazi talking points. we'll bring you that. part of his story was based on inaccurate summary of e-mails that made things look worse for the white house and that has sparked all kinds of questions. >> abc has not obtained e-mails. they bizarrely decided to update their story. >> should abc now retract its error in the talking points story? it was almost like a